Department store chain House of Fraser intends to invest up to £35m ($43m) in UK-based digital bank Tandem, the Telegraph has reported.
Tandem runs a bank that has no brick-and-mortar branches and which instead conducts its business entirely through an app. It currently offers savings accounts to customers and plans to expand to current accounts and credit cards in 2017.
House of Fraser issues credit and loyalty cards but will form a partnership with Tandem that will involve the startup’s services being offered at its branches. It is set to disclose more details in the form of a five-year plan expected to be revealed in the first half of 2017.
Tandem had previously announced £22m in funding from Omidyar Network, Route66 Ventures and eVentures in May 2016, securing the capital at a £65m valuation. It subsequently raised $2.3m in a crowdfunding campaign on Seedrs the same month.